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April 25, 2013

Global Civil Society Expresses Rejection of the Report, “The Future of Trade: The Challenges of Convergence”

The following media release was issued by the global Our World is Not for Sale (OWINFS) network rejecting a panel report released yesterday at the World Trade Organization (WTO). Public Citizen's Global Trade Watch is a participating member of OWINFS.

Owinfs

April 24, 2013 -- Global Civil Society Expresses Rejection of the Report, “The Future of Trade: The Challenges of Convergence”

Contact: Deborah James +41 (0) 76 652 6813

Civil society experts from the global Our World Is Not for Sale (OWINFS) network expressed rejection of the panel report “The Future of Trade: The Challenges of Convergence,” released today at the World Trade Organization (WTO), both in terms of its content and process.

Last year, at the time of the launching of the panel, OWINFS sent a letter to Pascal Lamy objecting to the formation of the panel, in terms of its lack of diversity, such as its exclusion of LDCs, its inclusion of only one Latin American and one African, its exclusion of the United Nations Conference on Trade and Development (UNCTAD), and its paucity of participation by civil society beyond the private business sector.

Today, at the launching of the panel’s report, we reiterate our criticism that we “find the process of the composition of the panel to have been autocratic and not in keeping with the rhetoric of a member-driven organization.” It was clear that even despite the best efforts of representative organizations such as the International Trade Union Confederation (ITUC), which participated in the panel, to include issues such as “to have the dominant context of inequality and unemployment recognised and the trade regime located in the context of a failed model of globalization,” such concerns were not included in the final text.

Two representatives of the OWINFS network intervened in the public discussion of the report at the WTO. Deborah James told the audience that based on this lack of representation, “it is thus no surprise that even though the report alleges to be focused on not immediate issues but the future, the report them makes specific recommendation to accept Trade Facilitation – which is the current demand of developed countries – for the proposed Bali package!

“At the same time, the report does not call for approval of the LDC (Least Developed Country) package demanded by the LDCs. And it does not deal with emergence of the Food Crisis and need for more policy space for developing countries to feed their poor including increasing livelihood of their poor farmers, which we all know is the emphasis of the G33 proposal. These – along with a fundamental re-taking up of the Implementation agenda issues – are the first steps of the changes needed to be made towards the transformation of the global trading system, to address historical inequities and asymmetries between developed and developing countries, and between benefits for corporations, and the negative impacts on workers and farmers. And I am quite aghast that the report even goes so far as to endorse the long-term developed country proposals that were explicitly rejected by developing countries in Cancun, of course I’m talking about the Singapore issues of competition policy and investment.

“So this report does not have any legitimacy; because it does not reflect the membership of the WTO, and therefore, with all due respect to the hard work of the participants, it must be said that it has no role in the future of the negotiations. This is a point that has already been made by several members at the last General Council meeting. But I also fail to see any way that this report reflects any future pathway of using trade for development, which is not even appear to be its goal, but rather I’m afraid that we must conclude that it is more reflection of the Secretariat’s continued emphasis on helping developed countries achieve their negotiating goals of simply expanding liberalization for the benefit of their corporations, rather than addressing the serious challenges facing the multinational trading system in terms of fundamental transformation needed to achieve trade for the true benefit of development and job creation.

Another member of the OWINFS network, Sanya Reid Smith of the Third World Network, said:

“I would like to thank the panelists for their work. I’ve just been speed-reading, so I haven’t finished reading it thought yet. From what I’ve read so far: in addition to concerns raised by OWINFS, I would repeat that at the beginning, the report says that trade is a means, not and end. Presumably for developing countries, development is the end goal. So it is interesting then that the report is about convergence of trade regimes, not convergence of levels of development. Usually in development, we talk about developing countries reaching desired levels of development, ie a convergence of development levels. So report seems to be about a convergence of trade regimes regardless of the levels of development as fixed time specific goals based on actual levels of development. (And as have seen, because of the financial crisis or HIV/AIDS etc, countries can actually go backwards in objective development indicators like life expectancy). This is despite the fact that there is a commitment to Special and Differential Treatment (SDT) throughout the WTO's rules. I recognize that the comments of some panelists who said that they personally don't believe in convergence at any cost, but the report itself appears to recommend violating or amending current WTO rules on SDT including for LDC status which is set objectively by UN.

Also I am shocked to see that proposal by one developed WTO Member to multilateralise the FTAs appears taken up as recommendation.

So as to future of this report, this panel was established by the Director General, Lamy, on his own responsibility. WTO Members did not choose panel members and did not set terms of reference or review the report before it came out, or agree to the text. So as raised by WTO Members in the past, the report does not seem to be grounds for basis for ministerial conference or any further work."

 

OWINFS is a global network of NGOs and social movements working for a sustainable, socially just, and democratic multilateral trading system. www.ourworldisnotforsale.org.

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